Few Boise taxpayers have time to worry about their taxes all day. Instead, their weeks are filled with day-to-day challenges that can quickly take precedence over looming filing dates, paperwork, or, eventually, unfiled back tax returns. That said, back tax returns are no joke.
Back tax returns are also often called ‘unfiled tax returns’ or ‘delinquent tax returns.’ In essence, they’re a tax return that an individual (or business) was required to file for a previous tax year but didn’t.
The IRS expects these returns to be filed, even when late since anyone who earns income is supposed to provide one, by law.
When a taxpayer does not file their tax return by the due date, they may face a range of consequences, including penalties, interest charges, and potential legal actions by tax authorities. These consequences can vary depending on whether the unfiled return results in a tax liability (i.e., the taxpayer owes taxes) or if they are due a refund.
To address back tax returns, taxpayers typically need to file their overdue returns as soon as possible and work with a skilled tax relief team to ensure they’re not leaving any money on the table — and that’s where we come in.
At Instant Tax Solutions, we can help you work with the IRS to secure the best situation for your financial future. So call (888) 485-8109 to schedule a no-obligation consultation to discuss your current situation with an experienced tax relief professional near you.
Boise Filing Back Tax Return Help
Let’s break down the step-by-step process of what happens in Boise, Idaho, when a taxpayer fails to file their tax return on time to see when and how this becomes a back tax return.
First, when a taxpayer in Boise, Idaho, misses the tax filing deadline, they may face initial penalties for late filing. These penalties are typically calculated as a percentage of the unpaid taxes owed.
If the taxpayer continues to neglect their tax obligations, they will receive notices from both the Idaho State Tax Commission and the IRS (since federal tax returns are also affected). These notices will flag their unfiled tax returns and show the penalties and interest that have accrued on their unpaid taxes.
After 90 days, you will receive a Notice of Deficiency CP3219N. There, the IRS will explain that it intends to create its own tax assessment for you based on its current knowledge of your income, accounts, and any other financial information.
Of course, it’s safe to say that this assessment will be limited and not include the advantageous credits and deductions you may have included when filing your own tax return.
At this point, the Idaho State Tax Commission will also classify the unfiled returns as late. This status means that the taxpayer has not filed their tax returns for one or more previous tax years, in most cases also confirming that they now have outstanding tax liabilities.
Of course, as the back tax returns accumulate, so do the penalties and interest charges. As these costs snowball, paying the total amount owed can quickly start to feel more and more impossible.
Worse, if the taxpayer continues to ignore their tax responsibilities, tax authorities may take more aggressive actions, such as placing liens on their property or garnishing their wages to collect unpaid taxes.
So, to avoid these worst-case scenarios, it’s important to reach out to a tax expert to go over your relief options before attempting to file any IRS back tax returns. Especially because when it comes time to file past-due returns, you may have multiple repayment options available.
Common Repayment Options
If you owe taxes and are filing late, you may still be able to qualify for one of the following forms of relief:
- Installment Agreement: Eligible taxpayers may be able to set up a payment plan with the IRS (and Idaho State Tax Commission) to pay off their debt over time. In effect, this means that instead of having to pay one huge lump sum, you can break your debt down into more manageable monthly installments.
- Offer in Compromise: Some qualifying taxpayers may be able to bring down their total tax debt owed by negotiating a settlement. To do so, you’ll need to prove that you cannot realistically pay off your total tax debt, but you’ll want to discuss this option with a tax return before trying to pursue this option.
- Currently Not Collectible Status: In some cases of financial hardship, the taxpayer may temporarily halt collection efforts. That said, any relevant interest and penalties may continue to accrue.
Can I Still Receive a Refund on My Back Tax Return?
Yes, in Boise, as in any other location, if you have not filed your tax return for a previous tax year but are owed a tax refund for that year, you can still receive the refund by filing your back tax return.
However, your ability to collect a refund may be inhibited by a few key factors:
- Statute of Limitations: There is a statute of limitations on claiming your tax refund, and in general, you have three years from your tax return’s original due date to claim a refund. If you wait beyond this period, you may forfeit your refund.
- Independent Filing Deadlines: To receive your refund, you must file the back tax return for the specific tax year in question. So, because each tax year stands on its own, if you have unfiled returns for multiple years, you’ll need to file each return separately.
- Penalties and Interest: While you may have been eligible for a refund, any penalties or interest you accrued (due to late filing) will be deducted from your refund, possibly even turning it into a debt, even if you didn’t owe anything at first.
- Offset for Outstanding Debts: If you have outstanding federal or state debts for services such as child support or student loans, the IRS (or Idaho state tax authority) may offset your refund to satisfy those debts.
Can I Use My Tax Refund to Pay Off Interest or Penalties?
Yes, you can technically use your tax refund to pay off interest and penalties that you owe to the IRS or state tax authorities. When you file your back tax return and claim a refund, you have the option to allocate a portion or all of your refund towards any outstanding tax liabilities, including interest and penalties.
How Can ITS Help Taxpayers With Boise IRS Delinquent Taxes?
If you’re struggling with paying back taxes in Boise, our tax experts can help review your situation to hammer out a plan.
In addition to providing the complicated legal and financial advice you’ll need to tackle the task at hand, we can also dispel the looming stress that comes with back tax returns. So, instead of spiraling about the threat of what you owe, let us break your situation down into a few clear, actionable next steps.
On top of that, we can also help with the following:
- Assessing Your Tax Liability: We’ll review your financial situation, including your income, expenses, assets, and liabilities, to determine your actual tax liability. In doing so, we can make sure to pinpoint any errors — or discrepancies — in your tax records to ensure you’re not overpaying.
- Negotiating with the IRS: We can communicate directly with the IRS on your behalf. If needed, we can even engage in negotiations to set up better repayment plans, reduce (or eliminate) penalties, and potentially lower the overall tax debt you owe with the help of a relief service like a Penalty Abatement, CNC, or Offer in Compromise.
- Protection from IRS Actions: Similarly, we can also protect your rights and interests while you’re dealing with the IRS. This can help prevent or mitigate some of the worst IRS actions, like wage garnishments, bank levies, or property liens.
- Tax Compliance: On top of helping you with your back tax returns, we can help you make sure that you remain in compliance with all your future tax obligations going forward so you can work your way to better financial health.
- Exploring Relief Options: Given our knowledge of all the various IRS relief programs available to Boise taxpayers, we can help determine what relief you may be eligible for and help you file for the appropriate relief service when needed.
Contact a Tax Expert Today
If you’re looking for filing back tax return help, you’ve come to the right place. At Instant Tax Solutions, we can help you tackle IRS delinquent taxes with confidence and right your course for a stronger financial future going forward.
We know that back tax returns can be intimidating, and most taxpayers can easily begin to feel more than overwhelmed by the mounting penalties, interest, and fees involved — yet your best option is to contact a tax expert as soon as possible so we can start working through your situation today.
So, if you’re ready to speak with a member of our team about filing your back tax returns, call our team at (888) 485-8109. Otherwise, you can also use this page to contact us online and schedule your initial consultation.